Sand engaged in operations at the start of 2018 and reported $550,000 in pre-tax book income for the year. Tax depreciation for Sand exceeded book depreciation by $50,000. The tax rate for 2018 was 30%, and Congress had enacted a tax rate of 20% for the years after 2018.

The journal entry to record the taxes for Sand Company at December 31, 2018 would be:

A) DR Income tax expense 170,000 CR Deferred tax liability 10,000 CR Income tax payable 160,000

B) DR Income tax expense 150,000 CR Cash 150,000

C) DR Income tax expense 160,000 CR Cash 160,000

D) DR Income tax expense 160,000 CR Deferred tax liability 10,000 CR Income tax payable 150,000